Hourly Owning & Operating Costs Estimation based on CAT Performance

Handbook:

Estimate the hourly Owning and Operating cost of a D$7$R Crawler Tractor dozing of bank

gravel $($high fuel consumption$).$ Minimal ripping will be required to loosen material. It will

be operating on Non$-$penetrable hard surfaces with $150$ mm $(6")$ or higher bumps, slightly

or intermittently damp soils containing a low proportion of hard, angular or sharp particles

with the following information.

Initial Cost with delivery cost: $$105,000$

Expected life: $8$ years

Expected usage $($hours$/$year$)$: $900$ hrs $.$

Salvage value: $$35,000$

Interest rate is $5\%$

Insurance is $1\%$

Taxes are $2\%$

Fuel cost is $$2\mathrm{.}4$ gal

Lube oils, fillers and grease service is expected every $100$ hours and cost $$370/$service

Z factor $=0\mathrm{.}7($between moderate and high$)$

Undercarriage basic factor: use D$7$R$\text{'}$s value

The repair cost is $$8\mathrm{.}50/$ hour

Special wear items: Set of teeth for $$1,000$ which will have to be replaced every $520$ hrs

Operator's hourly wage is $$65/$hour